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Blackstone’s GSO Distressed-Debt Bets Post 30% Quarterly Loss

  • Energy sector investments sour along with oil prices
  • ‘Distress takes time to play out,’ COO Jonathan Gray says

Photographer: Bing Guan/Bloomberg

GSO Capital Partners LP reported its worst performance in at least a decade from distressed-debt investments, even as the pandemic boosted potential targets in March to almost $1 trillion.

The credit arm of Blackstone Group Inc. recorded a negative 30.3% net composite return on distressed assets during the first quarter, the company said in a Thursday statement. The losses were driven in part by energy, which hobbled returns and remains a deeply troubled sector, management said during a quarterly earnings call with investors.